Connecticut Partnership for Long-Term Care
January - March 2010
PARTNERSHIP EXPANSION CONTINUES
The Deficit Reduction Act (DRA) of 2005 removed restrictions that had been in
place since 1993 on new states who wished to develop Partnership for Long-
Term Care programs. With these restrictions lifted, the DRA set the stage for
Partnerships to expand to new states. To date, 32 new states have received
approval to implement Partnership programs. The new Partnership states are:
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Missouri,
Nebraska, Nevada, New Hampshire, New Jersey, North Dakota, Ohio,
Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South
Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming. This is in
addition to the four original Partnership programs in California, Connecticut,
Indiana and New York.
As reported in previous Quarterly Updates, on March 27, 2009, Connecticut
received approval from the federal government to join the National Reciprocity
Compact for the granting of Medicaid Asset Protection for states with Partnership
for Long-Term Care programs. The approval is retroactive to January 1, 2009.
However, all Connecticut Partnership policyholders are covered under the
Reciprocity Compact, regardless of when they purchased their Partnership
Under the terms of the Reciprocity Compact, Connecticut Partnership
policyholders who relocate to another state may be eligible to receive dollar-for-
dollar Medicaid Asset Protection just as they would when they apply to
Connecticut’s Medicaid program. Two conditions must be met for a policyholder
to be eligible for reciprocity in another state: (1) the policyholder must apply to
and qualify under the other state’s Medicaid program; and (2) at the time the
policyholder applies to the other state’s Medicaid program, Connecticut and the
other state must be members of the Reciprocity Compact or Connecticut must
have a separate reciprocal agreement with that state for the granting of Medicaid
The Reciprocity Compact requires that any state participating in the
Compact must agree to engage in reciprocity with every other state in the
Compact for the purpose of granting dollar-for-dollar Medicaid Asset Protection.
In addition, the original reciprocity agreement between Connecticut and Indiana
remains in effect.
For a list of states currently participating in the Reciprocity Compact, go to the
following website - http://www.dehpg.net/ltcpartnership/StateReciprocity.aspx or
call the Connecticut Partnership at 860-418-6318.
It’s important to note that states are permitted to opt in and out of the Reciprocity
Compact at any time. A state can opt out of the Reciprocity Compact by giving
60 days notice to the federal government. Consequently, the list of states
participating in the Reciprocity Compact may change over time.
Of greatest importance to a Connecticut Partnership policyholder is whether
Connecticut has Medicaid Asset Protection reciprocity with their state of
residence at the point the individual applies to that state’s Medicaid
program. Because it is possible that the list of participating states may change
as states exercise their option to opt in or out of the Reciprocity Compact, it is
critical that policyholders and insurance producers alike understand that
reciprocity will be granted based on state participation in the Reciprocity
Compact at the time of Medicaid application.
Since participation in the Reciprocity Compact is optional, we advise that a
decision to purchase a Partnership policy should not be made based on
reciprocity with other states. Reciprocity should be viewed as a potential
bonus for policyholders that does not add to the cost of their Partnership
policy premium. The only firm guarantee the State of Connecticut can provide
to a Connecticut Partnership policyholder is that Connecticut’s Medicaid program
will recognize their earned Medicaid Asset Protection.
Please remember that Medicaid Asset Protection does not add to the cost of a
Partnership policy. A Partnership and non-Partnership policy from the same
insurer will have identical premiums when the policy benefits are the same.
Therefore, if a Partnership policyholder did end up in a state that didn’t have a
Partnership program or a state who Connecticut did not have reciprocity with,
they would not have paid any more premiums than if they had purchased an
identical non-Partnership plan. However, if someone purchases a non-
Partnership policy because the state they plan to move to doesn’t have a
Partnership program, they will be out of luck if that other state develops a
Partnership program in the future and has reciprocity with Connecticut.
The Reciprocity Compact will only apply to Partnership policies so it’s best
to purchase a Partnership plan to start.
For more information for yourself, as well as for your clients, the Partnership has
developed a handout on the Reciprocity Compact which includes a Frequently
Asked Questions section. The handout can be accessed through the
Partnership website at the following link:
All of the new Partnership states are part of the Reciprocity Compact with the
exception of Wisconsin. Wisconsin’s state law for the Partnership requires that
an individual be a Wisconsin resident when they purchased their Partnership
policy in order to receive Medicaid Asset Protection. It’s possible Wisconsin may
revise their Partnership statute in the future to allow them to join the Reciprocity
Of the four original Partnership states (CA, CT, IN & NY), Connecticut and
Indiana have joined the Reciprocity Compact. California and New York have
indicated that, at this time, they do not plan to apply to join the Compact.
The Department of Health and Human Services has contracted for the
development of a website where information on new Partnership programs is
available. The link to the website is http://www.dehpg.net/ltcpartnership/
We suggest you periodically check the website to see what new information has
PARTNERSHIP SALES CONTINUE TO GROW
In the quarter ending June 30, 2009, total Partnership sales passed the 50,800
level with 50,892 sold to date. In addition, over 62,000 Partnership applications
have been submitted, bringing the total number of applications to more than
95% of purchasers are under the age of seventy and 58% under the age of 60.
The average age at time of purchase is 58 and the average maximum benefit
purchased is $241,232. In addition, over $63 million in Medicaid Asset
Protection had been earned as of 6/30/09 by Partnership policyholders receiving
benefits under their policies. For additional information about Partnership sales,
go to the Partnership’s website at
POLICY COMPARISONS REPORT
The Partnership’s Policy Comparisons Report has been revised to reflect
updated information for 2010 regarding the Partnership’s minimum daily benefit
levels and tax-qualified policies.
In addition, in the revised Report, both Allianz and Great American have been
removed since they ceased selling long-term care insurance starting in January
The Policy Comparisons Report is available electronically. A PDF version of
the Report can be downloaded from the Partnership website by selecting “Policy
Comparisons Report” from the following link:
You can also download other Partnership publications from this link.
Please note that you are prohibited from altering the Policy Comparisons
Report in any manner, such as adding your name to the Report, attaching a
business card, or reformatting or rearranging the Report in any way. You
are free to make as many copies of the Report as you would like as long as
the Report is not altered in any manner.
If you would like a printed copy of the Report, we can provide you with up to 10
copies of the January 2010 edition at this time. Please note it may take 2-4
weeks for delivery. To order, send an e-mail to: email@example.com .
Please include your mailing address in your email.
Insurance professionals who have sold more than 10 CT Partnership policies
during the six-month period between July 1st and December 31st, 2009. Please
e-mail the Partnership office at firstname.lastname@example.org and give us your name
and the number of policies you sold during the past 6 months. Producers who
respond will be recognized in the Spring issue of Quarterly UPDATE. As a
reminder, we must hear from you if you wish to be recognized in our next
Update. We do not receive agent-specific sales information from the
NEW MINIMUM BENEFIT LEVELS
Effective January 1, 2010, the minimum benefit amounts that can be purchased
under the CT Partnership are $193 per day for nursing home care and $96.50
per day for home and community-based care. These minimum daily benefit
levels do not necessarily reflect the recommended amount to purchase. Rather,
they reflect the least amount in daily benefits that are allowed on a Partnership
application. Please note that insurers can set their own minimum benefit
levels for their Partnership plans as long as the amount equals or exceeds
the Partnership minimums.
The Partnership minimum daily benefits are based on the date of
application as opposed to the date the policy is issued. Under this method
it does not matter when the policy is issued. The minimum benefit
required will be based on the date the application is taken. Therefore,
someone applying for Partnership coverage on 12/31/09 would be subject
to the 2009 minimum benefit requirements even though the policy would be
issued in 2010.
The minimum daily benefit requirements under the Partnership also apply to
existing policyholders. In other words, if a policyholder wishes to reduce their
daily benefit, they cannot reduce it to a level that is below the Partnership
minimum for the current year.
SPOUSAL ASSET LIMITS
FOR CT MEDICAID
Effective January 1, 2010 the maximum amount of assets a spouse living at
home can keep when his/her spouse is on Medicaid and receiving long-term
care services is $109,560. The minimum amount of assets a spouse can keep is
$21,912. (The primary residence is not considered a countable asset when one
spouse is residing in it.) These amounts are unchanged from 2009. Remember,
these spousal asset limits do not apply to most people because only about 20%
of individuals are married at the time they apply to Connecticut’s Medicaid
Program for long-term care services.
TAX QUALIFIED PREMIUM LIMITS FOR 2010
The limits for how much premium can be counted as an unreimbursed medical
expense for tax-qualified policies has been revised for taxes filed for calendar
year 2010. The new limits are noted below.
Attained Age Before the Close of the Tax Year Tax Limitation on Premiums
Calendar Year 2010
40 or less $330
41 – 50 $620
51 – 60 $1,230
61 – 70 $3,290
71 and older $4,110
NEW “BEFORE YOU BUY” PUBLICATION
The Partnership’s “Before You Buy” publication, that is required to be provided to
every Partnership policy applicant, has been updated for 2010.
“Before You Buy” can be downloaded from the Partnership’s website at:
If you would prefer to obtain printed copies of “Before You Buy”, please contact
your general agent or insurer. It is their responsibility to distribute printed copies
of the publication to their producers.
Other Partnership publications available for downloading from the Partnership
Cost of Care in Connecticut
Frequently Asked Questions
Connecticut Partnership Policies Can Save You Money
The Cost of Waiting to Buy Long-Term Care Insurance
Please note that these Partnership publications are not to be modified or
altered in any manner for any purpose.
PARTNERSHIP TRAINING FORMAT PROVIDES REFRESHER
COURSE OPPORTUNITY FOR CERTIFIED AGENTS
By regulation, any producer who wishes to sell or market a CT Partnership policy
must have at least 7 hours of training on long-term care issues and the
Partnership. This training requirement had been met by producers attending a 7
hour classroom training conducted by CT Partnership staff.
The current training format consists of two components.
The first component is a Prerequisite Online Course that covers basic long-
term care subjects, including how long-term care insurance works, Medicare,
Medicaid, etc. This course is currently being offered by two outside vendors,
while additional vendors may be approved to offer the course in the future. The
course culminates in an exam that must be passed in order to be eligible to
register for the second component of the training. The fee for the online course
and its related Continuing Education Credits is handled directly by the vendors.
The second mandatory component of the training is a 4 hour Classroom
Training Course to be conducted by CT Partnership staff. This training will
focus solely on the Partnership. Only producers who successfully complete the
Prerequisite Online Course are eligible to register for the Partnership classroom
course. The fee for the Partnership classroom course is $125. Completion of
both components is required before a producer will be certified to sell
Partnership policies. For CT resident producers, the Prerequisite Online Course
earns 8 Continuing Education (CE) credits (5 Life & Health and 3
Laws/Regulation/Ethics) and the 4 hour Partnership classroom course earns 4
CE credits (4 Life & Health).
This new training format only applies to producers who have NOT yet been
Partnership certified. If you are already Partnership certified, you are not
required to take any additional Partnership courses since the Partnership
certification is a one-time requirement.
However, if you are already Partnership certified, you are welcome to attend the
Partnership’s 4 hour training course. If you are already Partnership certified,
you will not be required to take the Prerequisite Online Course in order to
register for the Partnership classroom course. We will just need to verify
your Partnership certification when you call to register. The 4 hour
Partnership training course can provide a useful refresher for producers
who are already Partnership certified, especially those that attended the
Partnership training many years ago. Producers who take the Partnership
class as a refresher course also must pay the $125 course fee and are eligible to
earn 4 Life & Health CE credits (CE credits only available for CT resident
For detailed information on the Partnership training, visit the Partnership website
Quarterly UPDATE is published for certified producers and other professionals
by the State of Connecticut, Office of Policy & Management.
Direct inquiries to: Connecticut Partnership for Long-Term Care, 450 Capitol Ave.- MS# 52LTC,
Hartford, CT 06106-1379, (860) 418-6318.